Driving Dubai Industrial Expansion through Strategy

Rather than marking a cyclical rebound, 2026 is increasingly seen as a consolidation year, in which diversification-led development ends up being more deeply embedded in the region's financial model, decreasing reliance on hydrocarbons and increasing strength to external shocks. Forecasts from significant organizations broadly assemble on a stronger GCC development profile in 2026 than in 2025, supported by resistant domestic demand, continued non-oil expansion, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent development in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output growth projected to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs international growth reducing to 3.1 percent in 2026, with innovative economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that local threat conditions remain contained and reform momentum holds.

Information from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as federal governments expand financial investment in services, facilities, and technology. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing investment in innovation and AI-related infrastructure.

ANSR July GCC PRs 50DR+

Key Tips for Industrial Excellence in Dubai

Public-sector investment and reform remain main to sustaining this trend. Policy steps aimed at drawing in foreign direct financial investment, alleviating foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil rate volatility. While hydrocarbons no longer control the development outlook, oil incomes are anticipated to play an encouraging role in 2026.

Oxford Economics anticipates Brent crude rates to fall listed below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. However, oil supply is forecast to increase once again in the 2nd half of the year, with a full loosening up of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly supportive of development. Inflation is anticipated to stay low, with the IMF forecasting average inflation of 2 percent across the region in 2026. Stable costs are helping protect real family earnings and underpin customer costs, which Oxford Economics anticipates to grow by approximately 3.5 percent over 20262027.